{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/410/30/#55-implementation-guidance-and-illustrations","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"410","topic_title":"Asset Retirement and Environmental Obligations","subtopic":"410-30","subtopic_title":"Environmental Obligations","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"410-30-55-1","para":"55-1","html":"
This implementation guidance illustrates paragraphs
410-30-30-10 through 30-11
. Examples of incremental direct costs of the remediation effort include the following:
  1. a
    Fees to outside law firms for work related to determining the extent of remedial actions that are required, the type of remedial actions to be used, or the allocation of costs among potentially responsible parties
  2. b
    Costs related to completing the remedial investigation-feasibility study
  3. c
    Fees to outside engineering and consulting firms for site investigations and the development of remedial action plans and remedial designs
  4. d
    Costs of contractors performing remedial actions
  5. e
    Governmental oversight costs and past costs; usually this is based on the cost incurred by the Environmental Protection Agency or other governmental authority dealing with the site
  6. f
    The cost of machinery and equipment that is dedicated to the remedial actions and that does not have an alternative use
  7. g
    Assessments by a potentially responsible party group covering costs incurred by the group in dealing with a site
  8. h
    Costs of operation and maintenance of the remedial action, including the costs of postremediation monitoring required by the remedial action plan.
","snippet":"This implementation guidance illustrates paragraphs 410-30-30-10 through 30-11. Examples of incremental direct costs of the remediation effort include the following:\n(a) Fees to outside law firms for work related to dete…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:93764f947c72590e5b4155dd89684b0a103e1fbc4fe5fad3fc0efd9fe896a9d5","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-2","para":"55-2","html":"
Examples of employees who may devote a significant amount of time directly to the remediation effort include the following:
  1. a
    The internal legal staff that is involved with the determination of the extent of remedial actions that are required, the type of remedial action to be used, and the allocation of costs among potentially responsible parties
  2. b
    Technical employees who are involved with the remediation effort.
","snippet":"Examples of employees who may devote a significant amount of time directly to the remediation effort include the following:\n(a) The internal legal staff that is involved with the determination of the extent of remedial a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b9ceb176393a769c7c12431801a53ae5e60bcc9aed1d1911e1e81b7791927a0f","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-3","para":"55-3","html":"
Estimates of the compensation and benefits costs to be incurred for a specific site should be made in connection with the initial recording of the remediation liability and subsequently adjusted at each reporting date to reflect the current estimate of such costs to be incurred in the future.
","snippet":"Estimates of the compensation and benefits costs to be incurred for a specific site should be made in connection with the initial recording of the remediation liability and subsequently adjusted at each reporting date to…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1450a78f59e1527f13892c4e182e2066c2acec9e193201b00acb134908824828","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-4","para":"55-4","html":"
There are numerous ways to allocate liabilities among potentially responsible parties. The four principal factors considered in a typical allocation process are the following:
  1. a
    Elements of fair share. Examples are the amount of waste based on volume; the amount of waste based on mass, type of waste, toxicity of waste; the length of time the site was used.
  2. b
    Classification of potentially responsible party. Examples are site owner, site operator, transporter of waste, generator of waste.
  3. c
    Limitations on payments. This characteristic includes any statutory or regulatory limitations on contributions that may be applicable to a potentially responsible party. For example, in the reauthorization of the Comprehensive Environmental Response, Compensation, and Liability Act, it has been proposed that the statute limit the contribution of a municipality to 10 percent of the total remediation liability, irrespective of the municipality's allocable share.
  4. d
    Degree of care. This refers to the degree of care exercised in selecting the site or in selecting a transporter.
","snippet":"There are numerous ways to allocate liabilities among potentially responsible parties. The four principal factors considered in a typical allocation process are the following:\n(a) Elements of fair share. Examples are the…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f391428044aff026c7ead787d73855c4304fc723157686f3d2a83e75170b414e","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-5","para":"55-5","html":"
Potentially responsible parties may reach an agreement among themselves as to the allocation method and percentages to be used, they may hire an allocation consultant whose conclusions may or may not be binding, or they may request a nonbinding allocation of responsibility from the Environmental Protection Agency. The allocation method or percentages used may change as the remediation project moves forward. An agreement to reallocate the preliminarily allocated liability at the end of the remediation project may exist, or the allocation percentages may be adjusted during the project to reflect prior allocations that subsequently are agreed to have been inequitable. This implementation guidance illustrates paragraph 410-30-30-1.
","snippet":"Potentially responsible parties may reach an agreement among themselves as to the allocation method and percentages to be used, they may hire an allocation consultant whose conclusions may or may not be binding, or they …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e0dcb60eb5679c02da3eedd23fb3f09f1e249d769f4ada68bbcb3dbd014176ab","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-6","para":"55-6","html":"
This implementation guidance addresses the criterion in paragraph 410-30-30-19(b) involving the dependency of the timing of the recovery on the timing of the payment of the liability. That criterion would usually be met, for example, if an insurance entity agrees, in accordance with the terms of an insurance contract, to reimburse the reporting entity for all or a percentage of the remediation costs incurred by the reporting entity as the reporting entity expends money to satisfy its obligation. That criterion likely would not be met, for example, in a lump-sum buyout by an insurance entity of contested coverage.
","snippet":"This implementation guidance addresses the criterion in paragraph 410-30-30-19(b) involving the dependency of the timing of the recovery on the timing of the payment of the liability. That criterion would usually be met,…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fa29e7177481c9dd217c82c9370a062234c300a26fc8b93905b7f66a6d50fb2a","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7232522766fe06a9105d4fe247557f365a8e2d7ee09fe3d5b10cea293da42ab9","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"410-30-55-7","para":"55-7","html":"
This Example illustrates application of the disclosure requirements of Subtopic 275-10.
","snippet":"This Example illustrates application of the disclosure requirements of Subtopic 275-10.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67426dd7173d0c55aaca8ef7bcaff6f6ec7dac5d9f4ef38e8a896f501c97325c","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-8","para":"55-8","html":"
Ace Oil Company is a distributor of heating oil with four storage and distribution facilities located in Anystate. Federal, state, and local laws and regulations govern the operation of the entity's facilities. The entity has determined that, beginning in the coming year, a significant number of its storage tanks and a significant amount of its other equipment will need to be removed, replaced, or modified to satisfy regulations that go into effect in varying stages over the next seven years. In addition, the entity has a present obligation to decontaminate the soil in the near term at its largest facility.
","snippet":"Ace Oil Company is a distributor of heating oil with four storage and distribution facilities located in Anystate. Federal, state, and local laws and regulations govern the operation of the entity's facilities. The entit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:83b6bb442910ca0e9b2f5d2df66b4a1b93446455722e74164ca31387322a53ad","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-9","para":"55-9","html":"
The entity hired a consultant to evaluate the technological, regulatory, and legal factors involved. Based on the consultant's findings, the entity estimated that total environmental expenditures over the next 7 years related to the tanks and equipment will aggregate approximately $5 million. Of this amount, approximately $4.75 million represents capital expenditures, which are expected to be recoverable through operations. The existing tanks have a net book value of $500,000, and the equipment has a net book value of $475,000. The cost of soil decontamination is estimated to be at least $1 million, which is material to the entity's operations, and may be as high as $3 million. Exposure to legal liability to third parties is considered remote.
","snippet":"The entity hired a consultant to evaluate the technological, regulatory, and legal factors involved. Based on the consultant's findings, the entity estimated that total environmental expenditures over the next 7 years re…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f26b220b43d0f6248664839eee1c2f1355cde73f50ff70475fa25f1b3df702b","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-10","para":"55-10","html":"
The consultant has demonstrated substantial experience with similar sites, and the technical aspects of upgrading storage facilities and decontaminating soil appear to be fairly straightforward.
","snippet":"The consultant has demonstrated substantial experience with similar sites, and the technical aspects of upgrading storage facilities and decontaminating soil appear to be fairly straightforward.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ace42384dbccdbd47a76a846c49d822790669b18772773e5c1107754fdc0385","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-11","para":"55-11","html":"
The entity would disclose the following. (The italicized text illustrates the voluntary disclosure that is encouraged by paragraph 275-10-50-9.)
","snippet":"The entity would disclose the following. (The italicized text illustrates the voluntary disclosure that is encouraged by paragraph 275-10-50-9.)\nThe entity will begin a project to decontaminate the soil at its Anytown, A…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eebf4f11559ce12089bee58f3322cdb6e4649b4899a78a494b979513b6144781","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-12","para":"55-12","html":"
This disclosure informs financial statement users of the existence of the soil contamination problem at the financial statement date and indicates that the liability is susceptible to change in the near term. This Subtopic does not require disclosure of the capital commitment because it is not a present obligation for which an estimate is reflected in the entity's financial statements.
","snippet":"This disclosure informs financial statement users of the existence of the soil contamination problem at the financial statement date and indicates that the liability is susceptible to change in the near term. This Subtop…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68c9227ac1c2fad0b41ee40d5bf50b7906de9546b472c2bd28c05d96cdcf5a10","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-13","para":"55-13","html":"
Although, in this Example, the near-term nature of the possible change is indicated by a statement that the entity expects decontamination to be substantially completed within one year, an expectation that decontamination will take more than one year to complete would not preclude the estimate from being susceptible to near-term change. In such cases, the disclosure could be worded to specifically refer to the near term.
","snippet":"Although, in this Example, the near-term nature of the possible change is indicated by a statement that the entity expects decontamination to be substantially completed within one year, an expectation that decontaminatio…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:70e3e29fb4f25f04571c510d6d6f8016baef5e74718bb7411affc04925deba97","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-14","para":"55-14","html":"
This Example illustrates the guidance in paragraph 410-30-50-4 for accounting policies note disclosure for environmental remediation-related costs (information that is enclosed in brackets is not required).
","snippet":"This Example illustrates the guidance in paragraph 410-30-50-4 for accounting policies note disclosure for environmental remediation-related costs (information that is enclosed in brackets is not required).\nEnvironmental…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48a3ef8903c1b4350d778595cebda91d2af8cd4e424a4da2a8191e2ce42cbe5e","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-15","para":"55-15","html":"
This Example illustrates the guidance in paragraph 410-30-50-10 for disclosure for a situation in which all of the following conditions exist:
  1. a
    An entity is involved in a single environmental site at which a number of potential outcomes may occur.
  2. b
    There is a probable, reasonably estimable recovery from a third party.
  3. c
    The entity has accrued for the most likely outcome within a range of possible outcomes for each component.
  4. d
    The nature of the amounts accrued for remediation and the related probable recovery are necessary to be disclosed in order for the financial statements not to be misleading.
  5. e
    There is a reasonably possible loss exposure in excess of the amount accrued that is material and it is reasonably possible that a change in estimate that would be material to the financial statements will occur in the near term.
","snippet":"This Example illustrates the guidance in paragraph 410-30-50-10 for disclosure for a situation in which all of the following conditions exist:\n(a) An entity is involved in a single environmental site at which a number of…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f2d237330ebf527fe0a293b157debf7f710f9e9c2091b069cb2fd3926dabb992","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-16","para":"55-16","html":"
The entity would make the following disclosure (information that is enclosed in brackets is not required).
","snippet":"The entity would make the following disclosure (information that is enclosed in brackets is not required).\nEntity A has been notified by the Environmental Protection Agency that it is a potentially responsible party unde…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:065b56da365866424244f16103b36c1185a78c73344e4640056f079c58202224","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-17","para":"55-17","html":"
This Example illustrates the guidance in paragraph 410-30-50-11. An entity would make the following disclosure of a probable but not yet reasonably estimable environmental remediation loss contingency (information that enclosed in brackets is not required).
","snippet":"This Example illustrates the guidance in paragraph 410-30-50-11. An entity would make the following disclosure of a probable but not yet reasonably estimable environmental remediation loss contingency (information that e…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5858210fc8a03c6c7532e22eb14741404bd70eb1bdb23dee8d2cca461eaf0266","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-18","para":"55-18","html":"
The following Cases illustrate the guidance in paragraphs
410-30-25-16 through 25-19
:
  1. a
    Tanker oil spill (Case A)
  2. b
    Rusty chemical storage tank (Case B)
  3. c
    Air pollution caused by manufacturing activities (Case C)
  4. d
    Lead pipes in office building that contaminate drinking water (Case D)
  5. e
    Soil contamination caused by an operating garbage dump (Case E)
  6. f
    Water well contamination (Case F)
  7. g
    Underground gasoline storage tank leak (Case G)
  8. h
    Air in office building contaminated with asbestos fibers (Case H).
","snippet":"The following Cases illustrate the guidance in paragraphs 410-30-25-16 through 25-19:\n(a) Tanker oil spill (Case A)\n(b) Rusty chemical storage tank (Case B)\n(c) Air pollution caused by manufacturing activities (Case C)\n(…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:29a095bbec79ce0ec7e66fa30ea57274ca6f8eb83e4b5b6b7c89b01abe60db57","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-19","para":"55-19","html":"
The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.
","snippet":"The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2bb759466f2f9768cce5d83933f9d0c621c39b605d00e966fb97d86d99c12214","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-20","para":"55-20","html":"
The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.
","snippet":"The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d23626895390d0acdda36dff8cc78dcc1f469824a3f95e35bf2eeeb08b517417","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-21","para":"55-21","html":"
The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.
","snippet":"The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:659d4de0b4db7d98af3c146eeef75dd10c2ae6905ffde67cfce0d7131b1d68c1","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-22","para":"55-22","html":"
The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.
","snippet":"The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb90a4995493b0c60f3b1b440ca52ab44d19d7f0c62cd90c92adf2ead06453ca","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-23","para":"55-23","html":"
The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.
","snippet":"The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2acb44ab5e0854a6c6a806ae54b6d7810be0e74fbb67c357fc6102091ebf3822","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-24","para":"55-24","html":"
The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.
","snippet":"The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a51348fdd01930ed3a637f0673bcfbb0e39fc86a79b78ce7c46e6fc8473f2cc5","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-25","para":"55-25","html":"
The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.
","snippet":"The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:01a420b3d1e29574733332a614578e4ff93527ba33d9094a139046d4d2611b9c","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-26","para":"55-26","html":"
The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.
","snippet":"The following table provides a summary for determining whether costs to treat environmental contamination should be capitalized or charged to expense.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:feb8fd8880e02710f6e98f22e7e7b443a8545b4b5c9be45bd8640a4bbd95ae69","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-27","para":"55-27","html":"
This Example illustrates the application of the recognition and measurement guidance provided in Sections 410-30-25 and 410-30-30; it does not illustrate all disclosure requirements set forth in this Subtopic.
","snippet":"This Example illustrates the application of the recognition and measurement guidance provided in Sections 410-30-25 and 410-30-30; it does not illustrate all disclosure requirements set forth in this Subtopic.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7cf05d329ee7729a9ef72122fa3acbbb787991b434cfa62efd8b753e4069b420","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-28","para":"55-28","html":"
Prior to 1980, the XYZ Manufacturing Company contracted with a state-licensed waste hauling contractor to remove specified, nonhazardous solid and liquid industrial waste from one of its plants for disposal off-site at a state-licensed disposal facility. A purchase order was let, and the work was performed. The contractor complied with all applicable laws and regulations, and monthly reports were filed with appropriate state environmental agencies.
","snippet":"Prior to 1980, the XYZ Manufacturing Company contracted with a state-licensed waste hauling contractor to remove specified, nonhazardous solid and liquid industrial waste from one of its plants for disposal off-site at a…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c606a5e6185c40c19f8a6f70b62ec2e483ae617535334ef8109c876478adcaa","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-29","para":"55-29","html":"
In 1986, the entity received an information request from the Environmental Protection Agency pursuant to section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. The information request stated that the Environmental Protection Agency believed that hazardous substances at a site, now listed by the Environmental Protection Agency on its National Priorities List, were generated at XYZ's plant. XYZ was named as a potentially responsible party and was directed by the Environmental Protection Agency, under penalty of law, to search its records exhaustively and answer a series of questions possibly implicating it directly to the site, or indirectly by its having used one or more transporters the Environmental Protection Agency said it was also investigating.
","snippet":"In 1986, the entity received an information request from the Environmental Protection Agency pursuant to section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980. The information r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e230ea093d366c4cf9595300c9bf6d91b44f9a6f0ccbeeb758b1fe7fa2fa20a9","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-30","para":"55-30","html":"
XYZ searched its records as directed and determined late in 1986 that it had, in fact, contributed hazardous substances to the site. XYZ could not, however, determine how significant the hazardous substances it had sent to the site were in relation to the total population of hazardous substances at the site. The minimum remediation cost, including a minimum amount of legal fees, that XYZ was able to estimate was not material to its financial statements. XYZ was able, however, to determine that it was reasonably possible that its ultimate liability could be material.
","snippet":"XYZ searched its records as directed and determined late in 1986 that it had, in fact, contributed hazardous substances to the site. XYZ could not, however, determine how significant the hazardous substances it had sent …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:836683f8dbd80c9aced449933ff2317f64017262d5536ce8f549f760f033ea1a","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-31","para":"55-31","html":"
In 1987 the Environmental Protection Agency identified a number of waste generators, transporters, and site owner-operators as likely potentially responsible parties. The identified potentially responsible parties were invited to a meeting at which government lawyers requested that one or more of the potentially responsible parties voluntarily perform a remedial investigation-feasibility study to evaluate existing site conditions (including a public health and ecological risk assessment) and to develop a proposed array of remedial alternatives from which the Environmental Protection Agency would select a remedy and demand that it be implemented. Standardized Environmental Protection Agency terms and conditions, stipulated penalty provisions, and indeterminate scope of work elements inhibited voluntary agreement among the potentially responsible parties, and so a consent decree was not achieved.
","snippet":"In 1987 the Environmental Protection Agency identified a number of waste generators, transporters, and site owner-operators as likely potentially responsible parties. The identified potentially responsible parties were i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:86968cb3cbb4350db18d47555e59f785995ad1fa477c4cb1050dadfdc10ab70c","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-32","para":"55-32","html":"
In 1988 the Environmental Protection Agency asserted the existence of \"imminent and substantial endangerment\" at the site early in 1988 under section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act, and it issued a unilateral administrative order to the potentially responsible party with the deepest pockets—XYZ—to undertake the remedial investigation-feasibility study.
","snippet":"In 1988 the Environmental Protection Agency asserted the existence of \"imminent and substantial endangerment\" at the site early in 1988 under section 106 of the Comprehensive Environmental Response, Compensation, and Lia…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b838b14b0e5e6b865422b91c84101db48c19dfcee162e32803f7b1b3baee36a7","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-33","para":"55-33","html":"
Because triple damages are authorized under section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act, XYZ agreed to conduct the remedial investigation-feasibility study specified in the order and demanded that other identified potentially responsible parties participate in the effort. XYZ initially estimated the cost that would be incurred to perform the remedial investigation-feasibility study to be between $1 million and $2 million. Based on the limited information that was available about the site, information that XYZ had about its contribution to the site, and the number and financial condition of other potentially responsible parties, XYZ initially estimated that its ultimate share of this cost would prove to be in the range of 20 percent to 50 percent. XYZ also estimated that it would incur legal costs related to the remediation effort of $200,000 to $2 million in addition to any legal costs that might be incurred by any potentially responsible party group that might be formed. No amounts within any of these ranges were considered to be better estimates than any other amounts within any of these ranges. Because of a lack of information about the type and extent of the remediation effort that could be required, no range of cost of the overall remediation effort could be developed at this time.
","snippet":"Because triple damages are authorized under section 106 of the Comprehensive Environmental Response, Compensation, and Liability Act, XYZ agreed to conduct the remedial investigation-feasibility study specified in the or…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b2236694759a85e5adafae224944db0bd2e226eda4d99ceab5a1cc9a483ded60","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-34","para":"55-34","html":"
Under threat of a contribution lawsuit by XYZ, a potentially responsible party group was formed late in 1988. The potentially responsible party group had the following three objectives:
  1. a
    To implement the requirements of the unilateral administrative order in the most cost-effective and scientifically valid way
  2. b
    To raise money and allocate costs among the potentially responsible parties willing to perform the work based on the types and relative quantities of wastes shipped to the site or another agreed-upon formula
  3. c
    To recover costs from nonparticipating potentially responsible parties, if possible.
","snippet":"Under threat of a contribution lawsuit by XYZ, a potentially responsible party group was formed late in 1988. The potentially responsible party group had the following three objectives:\n(a) To implement the requirements …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1915dc2a1cad20f4fc97ce0842f96375e6c629a5edd24fface8f2c8eb9513bf2","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-35","para":"55-35","html":"
Because of the lack of a good data base of factual information upon which to make sound allocation decisions agreeable to all, outside arbitration was used in 1989 to allocate fair share costs among participating potentially responsible parties. The arbitrator preliminarily apportioned 65 percent of the costs for the site to the four participating potentially responsible parties, as follows.
","snippet":"Because of the lack of a good data base of factual information upon which to make sound allocation decisions agreeable to all, outside arbitration was used in 1989 to allocate fair share costs among participating potenti…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:18d5921923b9871dd79b3cacc3935d24d98c77536db7cee2a0e19ed4c2eba6d0","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-36","para":"55-36","html":"
Twenty-five percent of the site was determined to be the orphan share, for which no potentially responsible party could be identified. Ten percent was attributed to two recalcitrant (nonparticipating) potentially responsible parties, and there was insufficient information to overcome the presumption that costs will be allocated only among the participating potentially responsible parties.
","snippet":"Twenty-five percent of the site was determined to be the orphan share, for which no potentially responsible party could be identified. Ten percent was attributed to two recalcitrant (nonparticipating) potentially respons…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:64a8c2a97a9329a86f1fda0c1e3d00c76f8705555222657081240659b98811cb","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-37","para":"55-37","html":"
XYZ gained some understanding of the other participating potentially responsible parties' financial condition and believed each of them was able and likely to pay its full share of the costs of the remedial investigation-feasibility study. XYZ was concerned, however, about the ability of potentially responsible party No. 3 to pay its full share of the cost of the overall remediation effort.
","snippet":"XYZ gained some understanding of the other participating potentially responsible parties' financial condition and believed each of them was able and likely to pay its full share of the costs of the remedial investigation…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9ac9db6c11f1b79cba868afd1e5e0cb53ce639995937b03578a611682b510dd","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-38","para":"55-38","html":"
Based on the amount already spent on legal costs and the results of potentially responsible party organization efforts, XYZ determined that $350,000 was the best estimate of its separate legal costs. The estimate of the costs that will be incurred to perform the remedial investigation-feasibility study, which now included group administration costs, now stood at $1.2 million to $2.2 million.
","snippet":"Based on the amount already spent on legal costs and the results of potentially responsible party organization efforts, XYZ determined that $350,000 was the best estimate of its separate legal costs. The estimate of the …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:34de6882ab39773ef6e252deeadb712fbd058845e1d05fbd8ca7e0fb8a59a295","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-39","para":"55-39","html":"
The remedial investigation-feasibility study was substantially completed in 1991. No changes were made to the potentially responsible parties allocation percentages as a result of the remedial investigation-feasibility study completion. The potentially responsible party group's initial estimate of the cost of implementing the remedy expected to be required by the Environmental Protection Agency was $25 million to $30 million. No amount within this range was considered to be a better estimate than any other amount within the range. This estimate included estimates of the cost of all elements of the remediation effort, including common legal, engineering, construction, monitoring, operation and maintenance costs (including postremediation monitoring for a period of 30 years), and so forth.
","snippet":"The remedial investigation-feasibility study was substantially completed in 1991. No changes were made to the potentially responsible parties allocation percentages as a result of the remedial investigation-feasibility s…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c607ab8a70d884f6aaf057b916b7b9f771a1dc9e08022bf7800879f81c95ec44","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-40","para":"55-40","html":"
XYZ believed that potentially responsible party No. 2 and potentially responsible party No. 4 could and would pay their full shares of the cost of the remediation effort. Potentially responsible party No. 3, however, indicated that, because of its deteriorating financial position, it would likely be unable to pay more than two-thirds of its 15 percent share and none of its allocated amount attributed to the orphan and recalcitrant shares, or 10 percent of those costs. XYZ shared potentially responsible party No. 3's views about potentially responsible party No. 3's ability to pay.
","snippet":"XYZ believed that potentially responsible party No. 2 and potentially responsible party No. 4 could and would pay their full shares of the cost of the remediation effort. Potentially responsible party No. 3, however, ind…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a0544a4b5f794a357910bc5f332ee978fc856d3997f30a4c0375235972d06014","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-41","para":"55-41","html":"
Three years after site studies began, the Environmental Protection Agency and its outside contractors evaluated the reports submitted under the terms of the unilateral administrative order. A record of decision was issued by the Environmental Protection Agency on September 30, 1992, in which remedial actions based on the remedial investigation-feasibility study were selected and cost estimates were presented. The potentially responsible parties were requested to voluntarily implement the record of decision and again sign up to the terms demanded by the government. No preenforcement federal court review is permitted, even if the remedy specified in the record of decision is scientifically flawed, unattainable by available, proven technology, non-cost-effective, or open-ended. The potentially responsible parties had the following choices: perform the remedy specified in the record of decision voluntarily, or refuse to do work, in which case the Environmental Protection Agency would either issue another unilateral administrative order or perform the work using its contractor procurement systems and sue the potentially responsible parties for cost recovery. The potentially responsible parties agreed to perform the remedy specified in the record of decision and entered into a consent judgment.
","snippet":"Three years after site studies began, the Environmental Protection Agency and its outside contractors evaluated the reports submitted under the terms of the unilateral administrative order. A record of decision was issue…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bfeaac056a66308019b43772b377c9d14854904c2fb5efd13d0d01d6038ca2eb","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-42","para":"55-42","html":"
Note that the law requires the Environmental Protection Agency to review the record of decision and remedy within five years of its implementation by the potentially responsible parties. If the objectives of the record of decision have not been attained, the Environmental Protection Agency may make additional demands on the potentially responsible parties. If one or more potentially responsible parties believe they have paid a disproportionate share of the costs, they may track down other potentially responsible parties and sue them in a contribution action. Although requests for reimbursement from Superfund can also be made for allocations attributed to unidentified or unknown parties (the orphan share) under certain conditions, this is not usually allowed by terms and conditions of consent order settlements withthe Environmental Protection Agency.
","snippet":"Note that the law requires the Environmental Protection Agency to review the record of decision and remedy within five years of its implementation by the potentially responsible parties. If the objectives of the record o…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:08d845e53b904fd5a4be206ba489374c9bebe2d5254d44ab44f25f8dd01dd581","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-43","para":"55-43","html":"
Subtopic 450-20 requires accrual of a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Receipt in 1986 of an information request did not establish that a liability was probable because, notwithstanding the Environmental Protection Agency's interest in XYZ's connection, if any, to the site, it had not been established that XYZ was in fact associated with the site. As noted in paragraph 410-30-25-4, however, receipt of notification that an entity may be a potentially responsible party compels the entity to action.
","snippet":"Subtopic 450-20 requires accrual of a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Receipt in 1986 of an information request did not esta…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:704ae782ac2dfd896fd6b26639e40bffede0b1443907afee0ca0cc2d414591a6","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-44","para":"55-44","html":"
When XYZ determined late in 1986 that it had, in fact, contributed hazardous substances to the site, the liability became probable. The criteria for recognition had not yet been met, however, because XYZ did not have sufficient information to reasonably estimate a minimum amount in the range of its liability that would be material to its financial statements. Disclosure of the nature of the contingency and a statement that an estimate of the loss or range of loss cannot be made was required under Subtopic 450-20.
","snippet":"When XYZ determined late in 1986 that it had, in fact, contributed hazardous substances to the site, the liability became probable. The criteria for recognition had not yet been met, however, because XYZ did not have suf…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e149fdd1f990628df2579b40a9b6c6fd2ad6e5c81872c7c867ba32b9ad38e71e","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-45","para":"55-45","html":"
During 1987, little additional information that would aid XYZ in making an estimate of the loss or range of loss became available. Therefore, the accounting and disclosure for the contingent loss related to the remediation liability remained the same.
","snippet":"During 1987, little additional information that would aid XYZ in making an estimate of the loss or range of loss became available. Therefore, the accounting and disclosure for the contingent loss related to the remediati…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8d5f15b5991fa2cb923d72b312d97f41539a73a43d4661417b65c16c6cede199","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-46","para":"55-46","html":"
In 1988, when XYZ agreed to perform a remedial investigation-feasibility study in accordance with the Environmental Protection Agency's unilateral administrative order and the potentially responsible party group was formed, XYZ should have recorded a liability of $400,000, computed as follows.
","snippet":"In 1988, when XYZ agreed to perform a remedial investigation-feasibility study in accordance with the Environmental Protection Agency's unilateral administrative order and the potentially responsible party group was form…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8d298d1a6b5abf70c6439123dee1ef373de57aff7783b4ad72ccb01d3c0cc3bd","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-47","para":"55-47","html":"
Because other potentially responsible parties had agreed during 1988 to participate in the remedial investigation-feasibility study effort, they are considered to be participating potentially responsible parties. Neither the fact that the unilateral administrative order named only XYZ nor the fact that a preliminary cost-sharing formula had not yet been determined by the arbitrator should have required XYZ to accrue more than its estimated allocable share of the minimum estimated liability.
","snippet":"Because other potentially responsible parties had agreed during 1988 to participate in the remedial investigation-feasibility study effort, they are considered to be participating potentially responsible parties. Neither…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7613bb8f92b2d0712ac62e6236a78b715378ea15af924d86fac1706b3131ac8e","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-48","para":"55-48","html":"
Although no recognition benchmarks were achieved in 1989 or 1990, XYZ should have refined its estimate of its liability as additional significant information became available. For example, in 1989, when the preliminary cost-sharing formula was developed by the arbitrator and the estimate of the cost of the remedial investigation-feasibility study was revised, XYZ should have refined its estimate of its share of the cost of the remedial investigation-feasibility study and adjusted its liability to $719,231, less any amounts already expended. $719,231 is computed as follows.
","snippet":"Although no recognition benchmarks were achieved in 1989 or 1990, XYZ should have refined its estimate of its liability as additional significant information became available. For example, in 1989, when the preliminary c…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b71e5a90300e6751094be72b5ad94d4ffde3301a31ecfe043b0575330c35e970","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-49","para":"55-49","html":"
By the time the feasibility study was substantially completed in 1991, XYZ should have adjusted its liability to reflect its estimated share of the minimum amount of the overall remediation liability. Based on the facts presented, this amount should be $9,350,000, less any amounts already expended. $9,350,000 is computed as follows.
","snippet":"By the time the feasibility study was substantially completed in 1991, XYZ should have adjusted its liability to reflect its estimated share of the minimum amount of the overall remediation liability. Based on the facts …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:643b75c619bfeefeb11938e3e7391032bcb87f45df293e5851222313b8923985","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-50","para":"55-50","html":"
The estimate of the environmental remediation liability should be further refined when the record of decision is issued in 1992 and at various other points when additional information becomes available.
","snippet":"The estimate of the environmental remediation liability should be further refined when the record of decision is issued in 1992 and at various other points when additional information becomes available.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f98d6f3abe164def6a6b909117eb49aa8c005c508d1a26a745d80adb98b36026","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},{"citation":"410-30-55-51","para":"55-51","html":"
The measurement of the remediation liability should not have been discounted at any point during the period under discussion because the amount of the obligation and the amount and timing of cash payments were not fixed or reliably determinable.
","snippet":"The measurement of the remediation liability should not have been discounted at any point during the period under discussion because the amount of the obligation and the amount and timing of cash payments were not fixed …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:330e2caa89016f4b8fcc400967c5fa163968548cd377de4cd3c88fdc1a23be80","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:45597c9291c8641e5c6aed1f398712299d0f1e28b753756590d5bc36f9d8ce98","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:137bd075e23331fb748c781475ac8f698c082a27822dad4eb11e0605563fa005","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:137bd075e23331fb748c781475ac8f698c082a27822dad4eb11e0605563fa005","downloaded_from":"2026-09-10T00:21:44.319Z","last_downloaded_at":"2026-09-10T00:21:44.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481899","source_sha256":"0844d3799d334a54e91bf397468f8df6eca75e0329f83a60f40b9dc86977336e"}}